Mission-related and Program-related Investments.

Mission Related Investments (MRI) are any investment activity that furthers the investor's organizational mission.

Program Related Investments (PRI) are a type of mission or social investment that institutions make in order to achieve their philanthropic goals. They can be included in an institution’s five percent payout requirement.

  • Build Trust.

    Move away from a transactional mindset and towards genuine long-term relationship building. Honesty and accountability are key, especially when things go wrong or mistakes are made. This means being vulnerable and speaking truth to power, sometimes even within your own institution.

    Be Accountable.

    Set up accountability structures within your institution to ensure community feedback, insight, and decisions are captured and acted on in a timely and meaningful manner. Frequent temperature checks gauging community sentiments towards your participatory efforts help measure the success of your journey and identify any needed course corrections.

    Model Transparency.

    Clear and complete information is needed for community members to meaningfully participate. You can set the tone by ensuring any information shared is direct, understandable, and omits jargon. Information should be provided promptly—in a timely manner, in the written, visual, or oral formats most helpful to your community. Any requests should come with reasonable turn-around times.

    Compensate.

    Community members should be compensated for their time and expertise. This also means addressing other barriers to participation such as childcare and transportation. Community members are often asked for their opinions and input without remuneration. This perpetuates power dynamics and wealth inequities. Make sure to carve out a budget to compensate for participants’ time and effort. For more information on equitable compensation practices click here.

    Provide Clear Entry and Exit Points.

    Have clear timelines and milestones so the community can make informed decisions about engaging. Give clear direction on how community members can begin to engage, and how they opt out or stop. Consider exploring onramps and off-ramps to committees, positions on board, etc. to limit ambiguity and confusion.

    Allocate Resources.

    Dedicate resources such as time, team capacity, and budget to ensure that best practices are met throughout the process. This work takes significant staff capacity, relationship capital, time, and capital. It requires long-term commitment and dedicated budgets to match intentions.

    Shift Power not Burdens.

    While power sharing is important, it’s also important not to relinquish responsibility. Placing additional responsibilities on the community may also place undue burden. Institutions have access to resources and capacity that the community does not. Institutions should work with the community to identify the places they can absorb responsibilities, tasks, and work, to make it easier for the community.

    Set Expectations.

    Institutions must clearly communicate what is malleable and what is immutable within a process so community members can set their expectations accordingly. Knowing and clearly communicating where change is possible and where input matters targets the participatory process towards things that are influenceable. It also prevents community members from feeling like their perspectives and engagement weren’t respected. Before communicating this, institutions must internally understand where and how changes can be made.

  • Non-Participation

    Denying access to information, withholding information, or otherwise not sharing information as a result of unconscious or conscious exclusion. It can be intentional, such as when aiming to reduce harm before incorporating community voice.

    Inform

    Providing objective, relevant, and accessible information in a timely manner regarding decisions that have already been made. The information isn’t just clear and understandable, but it’s transparent and provides the context needed to make sense of it.

    Consult

    Gather input to obtain feedback, experiences, expertise, etc. through clearly defined channels controlled by your organization.

    Involve

    Ensure assets, needs, and concerns are integrated into processes and inform planning through bilateral processes that give everyone an opportunity to influence the direction/outcome. Involving the community includes more one-time engagements.

    Collaborate

    Ensure the capacity for the community to be in a substantive partnership role in decision-making and the implementation of decisions. Collaborating with the community includes more ongoing partnerships.

    Share Power

    You foster democratic participation and equity by sharing decision-making power. Confirm you are sharing power by tracking your efforts through continued conversation with your community to ensure they feel like they have the information and agency to make decisions.

Non-Participation - Our community may not be aware that we make MRIs/PRIs, or that we don’t share information about our MRI/PRI decisions or the processes.

Next Steps +

  • Assess what kind of non-participation your organization engages in:

    • Exclusionary Non-Participation

      • Make decisions about MRI/PRI recipients internally.

      • Have closed MRI/PRI solicitation channels such as through traditional financial advisors.

    • Harm Reduction

      • Shift decision-making power on MRI/PRIs to staff and away from the board.

      • Audit your application processes.

      • Audit your due diligence process and selection criteria.

  • Shift from exclusionary to harm reduction or subsequent participatory strategies.

Inform - We publicly share information about our MRI/PRIs—sourcing, underwriting criteria, investment terms, etc—after we have made decisions.

Next Steps +

  • Hold webinars on MRI/PRI opportunities at your institution.

  • Create educational materials about the use of MRI/PRI funding and how community initiatives may benefit from soliciting this type of money.

  • Publically share MRI/PRI recipients.

  • Share who holds decision-making power over MRI/PRI decisions.

  • Disclose MRI/PRI funding criteria and assessment rubric publically.

  • Provide education for potential recipients to learn about the diversity of finance options.

Consult - We gather feedback from our community to support our hypotheses about our endowment.

Next Steps +

  • Interview community-rooted intermediaries to better understand on-the-ground investment needs.

  • Ask community members to provide feedback on the application process.

  • Utilize an equity consultant to review your application processes.

  • Collect examples of creative investment terms that your community has seen or would like to see experimented with and decide if you can test any of them out.

Involve - We involve our community members to help shape and inform our MRI/PRI decisions—like sourcing, investment terms, etc.

Next Steps +

  • Ask community partners, grantees, or community-rooted intermediaries to refer potential MRI/PRI opportunities.

  • Hold a workshop to crowdsource questions for your MRI/PRI applications to make them more accessible and more equitable.

Collaborate - Community members play an active role in shaping our MRI/PRI decisions—through meaningful processes they own, membership on advisory boards, or other formal power-holding structures.

Next Steps +

  • Provide an ongoing process and structure for community members to give feedback and input on MRI/PRI applications, due diligence, and reporting processes.

  • Facilitate an ongoing conversation with borrowers to refine loan/capital terms and impact metrics.

  • Provide accessible structures for cross-borrower communication and collaboration.

  • Develop a community advisory board for MRI/PRI opportunities that makes recommendations but does not have voting power.

Share Power - We have numerous opportunities for community members to meaningfully engage with and make decisions on our MRI/PRI allocations and those with power are representative of the communities we serve.

Next Steps +

  • Community has a total, majority, and/or veto vote on how MRI/PRI capital is allocated.

  • Bring the community to negotiate. Help support in the negotiation of the amount and terms of investment, and the option for the borrower to walk away.

  • Contribute to a shared loan pool that is democratically governed.